Press Releases

Green Mountain Coffee Roasters Reports Fiscal 2006 Strong Fourth Quarter and Full Year Results
Strong Revenue Growth Drives Fourth Quarter Performance

WATERBURY, Vt.--(BUSINESS WIRE)-- Green Mountain Coffee Roasters, Inc., (NASDAQ: GMCR) today announced results for the fourth quarter and fiscal year ended September 30, 2006.

Net sales for the thirteen-week fourth quarter ended September 30, 2006 increased 83.7% to $66.9 million from $36.4 million in the twelve-week fiscal fourth quarter of 2005. Included in Green Mountain Coffee's fiscal fourth quarter 2006 net sales is approximately $21.6 million of Keurig, Inc.'s (Keurig) net sales after the closing of the acquisition on June 15, 2006. Please note that the fiscal fourth quarter and fiscal year 2006 have an extra week as compared to the 2005 periods.

Net income for the fiscal fourth quarter of 2006 was $1.5 million or $0.19 per diluted share, compared to net income of $2.4 million, or $0.31 per diluted share, for the year ago period. Excluding the impact of the non-cash items described below, non-GAAP net income grew approximately 14.0% in the fiscal fourth quarter totaling $2.7 million, or $0.34 per share, compared to non-GAAP net income of $2.4 million or $0.30 per share, for the year ago period. The non-cash items were: 1.) Pre-tax non-cash stock-based compensation charges associated with the Company's adoption of FAS 123R at the beginning of fiscal year 2006 of $472,000 or approximately $0.04 per diluted share in the fiscal fourth quarter; 2.) As part of the purchase price accounting for the acquisition of Keurig, the fiscal fourth quarter 2006 results include pre-tax non-cash amortization expense related to the identifiable intangibles and pre-tax non-cash inventory step-up adjustments of approximately $1.5 million or $0.11 per diluted share; and 3.) The Company's net income in the fourth quarter of 2005 includes recognition of after-tax non-cash income of $60,000 or $0.01 per share as a result of its equity investment in Keurig, Inc. A reconciliation of all GAAP to non-GAAP financial measures is provided in the Company's financial tables accompanying this press release.

For the fifty-three weeks ended September 30, 2006, the Company experienced a 39.5% increase in net sales to $225.3 million from $161.5 million for the fifty-two weeks ended September 24, 2005. Net income for fiscal 2006 was $8.4 million, or $1.07 per diluted share, as compared to net income of $9.0 million, or $1.17 per diluted share for the prior year. Excluding the impact of certain non-cash expenses illustrated in the financial tables accompanying this press release, non-GAAP net income grew approximately 21.7% in fiscal 2006 totaling $11.5 million, or $1.45 per share, compared to non-GAAP net income of $9.5 million or $1.23 per share.

Robert P. Stiller, Chairman, President and Chief Executive Officer said, "I am very pleased with the financial results we reported today and, in particular, the strong top and bottom line growth we delivered to our stockholders. In fiscal 2006 we acquired Keurig thus combining two strong brands. The acquisition enabled us to accelerate the sales and profit growth of the Company due to the leadership position of Keurig in the single-cup brewing industry for the home and office environments. Also, we grew shipments of our Newman's Own® Organics Fair Trade and entire Fair Trade and Certified Organics lines by 69% including the expansion into over 650 McDonalds restaurants. I believe that our balanced approach to social responsibility, combined with our entrepreneurial way of building our business to expand the reach of our brands, is contributing meaningfully to our success."

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